Revista Internacional de Economía y Ciencias de la Gestión

FDI Inflows in Bangladesh and Its Impact on Export, Employment Generation and GDP

Abstract

MD Showgat Jahan Shourave

FDI inflows in Bangladesh have been increasing at a faster rate for the past few years. This paper examines the impact of FDI on the county’s export, employment

generation, and gross domestic product (GDP). This paper found FDI has a positive relationship with the export sector while incoming FDI has not any positive effect on

employment generation. It has also been observed that local private investment has a greater impact on the GDP growth of the Bangladeshi economy than FDI. There is

also inequality between sectors in terms of FDI inflows. The manufacturing and power sector attracting higher FDI whereas agriculture, services, trade and commerce are

neglected. It is important to mention that barriers such as weak infrastructure, low skilled labour force and labour unrest, social and political instability discourage foreign

investors from investing in the country. So, it is time to pay attention to these problems and search for remedies to attain a higher level of FDI.